A looming port strike could have disastrous effects on the supply chain, raising prices on a slew of products.
The International Longshoremen’s Association and United States Maritime Alliance announced that their 45,000 port workers, who cover 36 ports along the East and Gulf coasts, would go on strike on Oct. 1. The strike could hurt supply lines and send prices skyrocketing ahead of the holidays.
Here are some of the main products that would be affected by the strike.
Toys
According to the Toy Association President and Chief Executive Greg Ahearn, the strike is certain to send prices up for one of the holidays’ most prized commodities.
“A supply chain disruption would undoubtedly lead to price increases across the board and would impact consumers’ ability to find the toys they are looking for in the weeks and months ahead,” he told USA Today.
Cars
One of the 36 ports that will be affected by the strike is the Port of Baltimore, which imports the most European cars. European car parts also primarily come through ports on the East and Gulf coasts.
Similarly, machinery, fabricated steel, and precision instruments are primarily imported through East Coast ports, according to S&P Global Market Intelligence.
Chocolate
Though Mexico and Canada are the two largest exporters of chocolate to the United States, Germany, Belgium, and Poland are the next three. The U.S. imports nearly $236 million of chocolate from Germany, $164 million from Belgium, and $133 million from Poland every year, according to the Observatory of Economic Complexity.
Luckily for many, Halloween candy has already mostly arrived, and Christmas candy may also avoid price rises. However, the new year won’t be so lucky, with price rises almost guaranteed for Valentine’s Day and Easter, CNN reported.
Alcohol
The U.S. is a major net importer of alcohol, with four of the five largest exporters in the world based in Europe. The strike would affect alcohol imports from the United Kingdom, Ireland, France, and Italy.
Bananas
Bananas are the most popular fruit in the U.S., and nearly all are imported. A large portion of these, 25% of consumption, is imported through ports affected by the strike, according to the American Farm Bureau. Port Wilmington, one of the ports represented by the ILA, has declared itself the U.S.’s largest banana port, the outlet reported.
Given that bananas cannot be stored, prices will be more affected than those of other products that can be stored, such as toys.
Seafood
Seafood, similar to bananas, isn’t easily stored and will be quickly affected by a strike. Due to the strike, codfish from Iceland and Canada and shrimp from Thailand and Ecuador will see price rises. Exporters in Southeast Asia usually send imports by way of the East Coast, as they’re often closer.
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Overland or air transportation is much more difficult when it comes to seafood.
“Those aren’t as easy to transport by train because they’re refrigerated and perishable,” University of California, Los Angeles, Professor Chris Tang told the outlet. “And airship is very expensive.”
